Nvidia $20B bond sale backs AI hosting shift by miners

Nvidia plans a $20 billion multi-part bond offering to finance artificial-intelligence capital spending and to refinance existing debt. The company intends to issue notes across seven maturities from two to 30 years, with the longest-dated paper expected to yield about 0.9 percentage points over comparable U.S. Treasuries.

Proceeds are designated for data-center hardware and other AI-related investments, and for reducing outstanding liabilities. Nvidia’s graphics processing units are widely used to train and run large language models and other machine-learning workloads, and cloud providers and hyperscalers buy GPUs in large volumes.

Investors have been financing the rapid buildout of AI data centers and related infrastructure, and the bond sale will be monitored as an indicator of demand for debt tied to AI capacity.

Several publicly traded Bitcoin mining companies, including HIVE Digital, TeraWulf, Hut 8 and CleanSpark, have begun marketing their facilities and power contracts as data-center capacity for high-performance computing and AI hosting. These firms are offering existing electrical hookups, on-site cooling and grid connections to provide compute and colocation services beyond cryptocurrency mining.

The change in activity among miners follows an April 2024 Bitcoin halving that reduced block rewards. Higher mining difficulty and elevated operating costs have compressed margins. Records show miners sold more than 15,000 BTC between October and March, and treasury sales accelerated after Bitcoin reached a peak above $126,000 in October.

Analysts expect some large miners to expand into broader infrastructure businesses focused on AI, pointing to rapid growth in cloud AI services as a driver of that shift. Availability of capital for servers, networking and real estate supporting machine-learning workloads could influence deployment schedules for cloud providers, hyperscalers and repurposed mining facilities.